Every day significant business transactions take place electronically. The Census Bureau of the U.S. Department of Commerce estimates that electronic commerce sales in the United States totaled $9.849 billion during the first quarter of 2002. Typically, transactions are conducted by users selecting desired products or services through a website. The user then provides payment information, such as a credit card number, and acknowledges the transaction by clicking on a button. These transactions may be conducted without requiring physical or electronic signatures.
In 2000, the U.S. enacted electronic signature legislation designed to afford electronic signatures the same legal weight as written signatures. This law allows many transactions required to be in writing to be executed electronically. Despite legal acceptance, it is uncommon to enter into some transactions, such as insurance agreements or real property transactions, using anything other than a written signature.
Much of electronic commerce occurs across the Internet, where consumers have instant access to a plethora of information. Consumers may use an increasing variety of devices to conduct electronic commerce across the Internet such as, for example, computers, mobile phones, and personal digital assistants. For example, using a wireless access protocol (WAP) enabled mobile phone, a user may browse and purchase products for delivery.
While even expensive products may be purchased electronically, some transactions usually are not entered electronically. For example, a consumer desiring an insurance policy for a car, house, or boat may be able to apply for an insurance policy electronically; however, most insurance companies require that submitted information be confirmed and signed in writing before issuing the policy. Some insurance companies may issue temporary binders that terminate in a short period of time unless a signed, written agreement is timely submitted by a customer.
Similarly, real estate transactions are rarely carried out electronically, though a home buyer may identify the house of their dreams through a website, contact the listing real estate agent via email, and apply electronically for a mortgage. Despite the home buyer's reliance on the Internet through the whole process, the transaction closing typically involves the home buyer signing a stack of papers before a notary public.